SANTA MONICA, Calif., Oct. 7 /PRNewswire/ -- Automakers typically raise incentives to help boost new car sales but in 2010, that trend was reversed. TrueCar.com, the authority on new car pricing, trends and forecasts, today released its findings comparing sales and incentive spending through September versus the same time period in 2009 and found that most major domestic brands decreased incentives yet saw sales rise, while Japanese brands increased their incentive spending only to see sales remain flat.
Domestic brands such as Buick and Cadillac, saw the largest sales spike, with an increase of 57.5 percent and 43.8 percent, respectively, while reducing their incentive spending from last year by nearly 14 percent. Toyota and Honda, meanwhile, saw sales remain virtually flat compared to last year even as they increased incentive spending by more than 30 percent in 2010. Hyundai, among the major Asian brands, continued to see sales growth while decreasing incentives by more than 37 percent.
"It's as if the world has turned upside down," said Jesse Toprak, VP of Industry Trends and Insight at TrueCar.com. "The comparisons to last year favor the domestics due to the Cash for Clunkers program and the success it brought the Asian brands but the numbers also illustrate how far the domestic automakers have recovered."
Below is a chart comparing domestic and Asian brand sales and incentive spending through September vs. the same nine months last year:
Sales/Incentives Comparison Year To Date (In Order By Sales Increase)*
January 2009 – September 2009 vs. January 2010 – September 2010
Sales Change YTD 2009 vs. 2010
1/2009 – 9/2009 Avg. Incentive Spend
1/2010 –9/2010 Avg. Incentive Spend
Avg. Incentive Spend Change YTD 2009 vs. 2010
*This list does not include domestic or Asian brands that have or will close by January 2011
For a more comprehensive list comparing brands sales and incentive spending through September vs. the same nine months last year, please visit the TrueCar Blog.
TrueCar is the authority in new car prices. We show car buyers and car dealers how much people actually paid for a particular car in a specific local area. With TrueCar pricing, both new car buyers and new car dealers can know at any time what is considered a good or great price on a new car. Consumers no longer need to walk into a dealership partially informed and fully suspicious – using TrueCar they walk in knowing the price of a fair deal. Dealers benefit by TrueCar's real-time, unbiased information about marketplace pricing, helping them price cars for increased sales, and ultimately gaining market share over other dealers. Our innovative new car pricing service is offered free of charge on our website at www.truecar.com, on our mobile site at mobile.truecar.com, and via syndication of our tools and pricing data to leading automotive research sites throughout the web.
About TrueCar Data
TrueCar obtains data directly from numerous sources including automotive dealers, technology companies, data aggregators, and analytics companies within the automotive space. We also acquire vehicle configuration data, customer and dealer incentives data, financing and loan data, vehicle registration and insurance data, and much, much more. TrueCar is insatiable about data with our goal to find 100 percent of all purchase transactions, even if that means finding the same transaction multiple times from multiple sources within the car-buying ecosystem. Our data is among the most timely and comprehensive in the industry. TrueCar believes the greater our informational accuracy, the greater benefit we provide to both dealers and consumers.
This press release and the information contained herein is for noncommercial use on "as-is, as available" basis and may be used for informational purposes only. TrueCar makes no representations or warranties, express or implied, with respect to the information contained in this press release and the results of the use of such information, including but not limited to implied warranty of merchantability, fitness for a particular purpose and non-infringement. The information contained in this press release may include technical inaccuracies or typographical errors. Neither TrueCar nor any of its parents, subsidiaries, affiliates or respective partners, officers, or directors, employees or agents shall be held liable for any damages, whether direct, incidental, indirect, special or consequential, including without limitation lost revenues or lost profits, arising from or in connection with your use or reliance on the information presented in this press release.
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.